State officials, flanked by consumer advocates and a former federal regulator, delivered a clear message last week: with the Consumer Financial Protection Bureau largely sidelined, states must ramp up oversight of scams, fraud, and predatory practices that threaten consumers, according to a published report.
The scene: The discussion included North Carolina Secretary of State Elaine Marshall, Rep. Deborah Ross [D-N.C.], and former CFPB Director Rohit Chopra.
- Marshall’s office has long investigated fraud, from fake charities and counterfeit goods to “pig butchering” investment scams and robocalls.
- She warned: “I can’t prosecute our way out of the problem, so we’ve got to use education as a strong, important component.”
Why it matters: This renewed state-level focus means regulators and consumer advocates are looking for gaps left by weakened federal enforcement. That often translates into greater scrutiny of debt collection, tenant protections, and lending practices.
- Chopra criticized federal agencies, saying the CFPB, FTC, and DOJ are “in a coma, not enforcing anything.”
- Consumer advocates argued that while North Carolina has protections, such as a 2009 law preventing debt buyers from securing default judgments against vulnerable borrowers, the political climate makes passing new laws unlikely.
Housing and debt concerns: The group highlighted a surge in corporate landlord evictions (nearly 20,000 in one North Carolina in 2024), predatory lending risks, and climbing insurance rates. Chopra warned: “I’m worried that the eviction tactics of corporate landlords really pushes the edge.”
The big picture: With the CFPB retreating under political pressure, state officials, nonprofits, and former federal leaders are preparing to carry more of the consumer protection load. That shift could mean:
- More aggressive state enforcement actions against lenders, collectors, and landlords.
- Expanded use of education campaigns targeting scams and financial fraud.
- Advocates pushing for stronger protections, even if legislative realities make them difficult to pass.
Chopra urged advocates not to lose momentum: “We need you to stay alive and to come back bigger and more powerful.”
